preview

Cross 9e TBB Ch20

Satisfactory Essays

Chapter 20 Agency N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. = A question included in the previous edition of the Test Bank. true/false questions 1. Agency relationships do not permeate the business world. answer: F PAGES: Introduction TYPE: N BUSPROG: Analytic AICPA: BB-Legal 2. The term fiduciary is at the heart of agency law. answer: t PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 3. Ratification involves a question of intent, and intent can be expressed only by words. answer: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 4. An …show more content…

an employee. b. an independent contractor. c. a principal. d. an agent. ANSWER: C PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 2. California Produce Company hires Drew to work on California Produce’s shipping dock, checking outgoing loads and dispatching the company’s drivers. With respect to California Produce, Drew is most likely a. an agent. b. an independent contractor. c. a principal. d. a work for hire. ANSWER: A PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 3. Elaine owns the Fabric & Yarn store. Goldie is a salesperson in the store. When Goldie makes a sale to Heather, the sale is binding on a. Elaine. b. Goldie. c. Fabric & Yarn only—and only if Elaine is present at the sale. d. no one. ANSWER: A PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 4. Sybil agrees with Tyrone and other professional athletes to sign contracts with promoters and others on the athletes’ behalf. Sybil is a. an agent. b. an employee. c. an employer. d. a principal. ANSWER: A PAGES: Section 1 TYPE: = BUSPROG: Reflective AICPA: BB-Legal 5. Ingmar asks Jessie to contract with Jessie’s high school classmates to babysit Ingmar’s new baby. Jessie orally agrees to do so. This is a. an agency by agreement. b. an agency by estoppel. c. an agency by ratification. d. not an agency relationship. ANSWER: A PAGES: Section 2 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 6. Lucille is married

Get Access